The founders of the Solutions Group came to Mark Prince and the team at The Design Mechanics at the launch of their business. The market research and customer knowledge investigations influenced the design of the business, as well as the marketing approach.
The concept was Bathroom Installation with a difference. Mark and the team looked at existing business models, financial performance and then created a unique programme which resulted in year one sales goals being exceeded by 50%. The company has since achieved year on year growth of 100%+ thereafter. Most importantly the model has been cash-positive from day one, and growth is phenomenally cash-generative compared with an industry norm of the opposite.
The performance and strategy implementation of the Solutions Group management team has been special to behold. With Mark providing light-touch support and the DM tech team providing a ‘marketing engine’ of localised websites using targeted pay per click advertising, the business has exceeded all market norms.
The essential point of difference for the business was remarkable execution, attention to detail and the daily building of minute improvements into the process. This cornerstone provided a platform for referrals and customer word-of-mouth testimonials that has fueled growth.
How have we helped The Solutions Group be so successful?
The research drove the action. The business is as remarkable for what it doesn’t do as what it excels in: no showroom, no inventory, no product displays, and no product brochures. Despite this lack of tangible assets that create the illusion of trustworthiness or of a real company in the bathroom industry, the business only accepts orders on the basis of a 50% deposit which is required to keep the installation slot.
Trust is created by branding and reputation, enhanced through marketing and real delivery. It is this brand management (driven by The Design Mechanics team) and reputation that drive the cash.
Product choice is limited to a very small, well-thought-through range, all available from one source with whom exceptional partnership terms and working arrangements are formed. Quotations and plans are automated, allowing the sales advisor to produce them in the customer’s home at the point of quote, not the traditional ‘some time later’ that you get with typical tradesmen.
The digital platform on which the business is built allows for fluctuating price levels based on supply or demand. The business sets expectations on a four week lead time for delivery, as order books grow beyond that point sales prices are increased to improve profitability.
The five year business plan format was never a feature for the Solutions Group (and not something we advocate for most businesses). Event-driven campaigns, each one improved upon the last as technology and learning develop, formed the cornerstone for growth. In their fourth year Bath Solutions has also launched Kitchen Solutions on the same business model to capitalise on positive referrals from the bathrooms and previous satisfied customers.